With compliance concerns as a backdrop, the $23 million Southpointe CU of St. Louis has agreed to merge the nearby $1 million North Jefferson County Catholic CU by Sept. 30.
Though North Jefferson remains well capitalized at 16%, the Arnold, Mo., credit union had started soliciting merger partners last January.
“It’s a basic economics of scale issue for them,” said Brian Eyestone, president/CEO of 2,600-member Southpointe, located in unincorporated south St. Louis County.
The faith-based North Jefferson, which lost $25,000 last year and $8,000 in the first half, was unable to keep up with changing conditions “and keep on top of all the new Dodd-Frank regulations,” said Eyestone.
The 423-member credit union, located in a church rectory, has been open Wednesday nights and on Saturdays.
The two CUs share similar history since before it moved to community charter and changed its name Southpointe was the Assumption Parish CU.
“We’re always happy to help out but merging other small credit unions is not our style or our goal,” said Eyestone, who is a director of the Missouri Credit Union Association.